L&G, Federated Hermes Merge £4.7 Billion UK Property Funds

Two of the UK’s longest standing property funds are set to merge, the latest consolidation in a sector that’s been hit with a wave of redemptions.

The Federated Hermes Property Unit Trust will be subsumed by Legal & General Plc’s Managed Property Fund, according to a statement Monday. The combined fund will have total assets of £4.7 billion ($6.4 billion), it said.

UK property funds have seen a wave of consolidation as defined benefit pension plans have been exiting illiquid assets after bond yields rose and they became fully funded. The sector has also been hit by a series ...